communicators." we want to start off by talking with the chairman of the california state board of equal ligse jerome horton. mr. horton, california has recently changed how it managed or its taxation policies when it comes to the internet, hasn't it? >> yes, peter, it has. it broadened the definition of what is taxable in california to include online retailers who meet certain criteria. >> now, said you broadened. how was it before and now who is included? >> prior to the law, the sales tax didn't apply to companies that had affiliates and worked through various different groups here in the state of california. the law broadened the definition of who actually qualities to include those individuals. so now online retailers who have affiliates in the state of california, who also have some form of brick and mortar either directly or indirectly working through other groups and in partnerships and so forth have next us in california by the definition of california law and therefore required to collect and collect the use tax in the state of california. companies that are now included would includ

that had affiliates and worked through various different groups here in the state of california. the law broadened the definition of who actually qualified, to include those individuals. so, now, online retailers who have affiliates in the state of california, who also have some form of brick and mortar, either directly or indirectly working through other groups and partnerships and so forth, have nexus in california by definition of california law and, therefore required to report and collect the use tax to the state of california. companies that are now included would include amazon, best buy, and wal-mart, that are making sales online. there are other criteria you have to make a million dollars, i believe in total revenue, and ten thousand dollars a year to california consumers, something along those lines. >> now, mr. horton, how much in revenue does the state of california expect to generate through this new taxation policy, and what's the rate of taxation? >> peter, the rate varies, depending on the definition, where the product is delivered, but it's somewhere around 9.75%. the to

brown in california assigned -- making sure that internet protocols would remain free from regulation. that was a bipartisan group coming together saying we want to have an ovation and we want to incentivize investment in that next -- an ovation and we want to incentivize assessment and the next generation. >> joining our conversation is one of our guest reporters. >> let us talk a bit more about communication. you were just mentioning -- do you think in a few years tech companies will be competitive with cable companies in wire line access? >> i think so. there has been an increased amount of competition. last year alone, $66 billion of infrastructure investments -- that is a substantial amount. especially in the current economic climate. i cannot believe they would not make eight investment if they did not think it was a competitive marketplace. -- a investment if they did not think it was a competitive marketplace. the rules of the road are going to be -- they wanted the rules of the road to be predictable. we want to make sure we are doing everything we can to make sure their regu

in california focused on voip, voiceover ip in particular. that was a bipartisan group of republicans and democrats coming together to say we want to have innovation, and we want to incentivize investment in next generation networks. and the way to do that is to make sure that we don't apply those legacy regulations to those networks. >> host: well, joining our conversation is one of our regular guest reporters, eliza krigman of politico. >> thanks so much for having me, happy to be here. do you think that the telecommunication companies in a few years are going to be competitive with cable in wire line access? and if so, how are they going to do that without upgrading their networks? >> guest: i think they will be competitive. i think you've seen an increased amount of competition in recent years, and in last year alone communications companies spent $66 billion in infrastructure investment. that's a very substantial amount, and especially in the current economic climate i have to belief they wouldn't make such substantial investments if they didn't anticipate really making a slash i

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